A reduction made on a long term investment is reversed when:
Athe holding turns into a current one
Bmanagement seeks higher profit
Cthe auditor wants it reversed
Dvalue rises or the reason ceases
Answer & Solution
Correct answer: D. value rises or the reason ceases
The reduction is written back if the investment value rises or the cause of the decline no longer exists.
Keep practising AS 13 Accounting for Investments
Browse all AS 13 Accounting for Investments questions for CA Inter, or explore more Accounting topics.
Related questions
Profits on disposal of current and long-term investments are shown:Statements classify fixed assets, investments and current assets into:A readily realisable investment is meant to be held for 18 months. It is:A readily realisable investment made on 1 April is intended to be sold on 15 February nextIf dividend cannot be allocated except arbitrarily, cost is cut only if it:Interest and rentals on investments are shown separately for:A significant restriction on selling an investment must be:Disclosure of investments must include the policies for determining: